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Very soon, Indian companies may be able to list their equity shares on overseas exchanges directly. SEBI has made a proposal to allow direct listing of Indian companies on overseas bourses, and foreign firms on Indian exchanges, and has set up an expert panel to look into it.
As of now, Indian companies can list their shares through depository receipts abroad, while foreign companies are allowed to list only via the Indian depository receipt route.
“Considering the evolution and internationalisation of the capital markets, it would be worthwhile to consider facilitating companies incorporated in India to directly list their equity share capital abroad and vice versa,” SEBI said in a release. “In this regard, it has been decided to constitute an expert committee to look into this aspect in detail.”
The committee will examine in detail the economic case for permitting direct listing of Indian companies overseas and vice-versa.
Besides, it would examine the various legal, operational and regulatory constraints in facilitating companies incorporated in India to directly list their equity share capital abroad and vice-versa, SEBI said.
The panel will also recommend a framework in which to facilitate direct listing.
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